Facebook X (Twitter) Instagram
    Crypto AcademyCrypto Academy
    • Home
    • News
    • Price Predictions
    • Price Analysis
    • NFTs
    • Learn
    • Press Releases
    • Coins
      • Bitcoin
      • Ethereum
      • Cardano
      • Safemoon
      • Dogecoin
    • Advertise on Crypto Academy
    Facebook X (Twitter) Instagram Telegram
    Crypto AcademyCrypto Academy
    Home»News»FTX Used $10 Billion of Customer Funds to Support Alameda Research
    News

    FTX Used $10 Billion of Customer Funds to Support Alameda Research

    Rea K.By Rea K.November 11, 2022Updated:November 11, 20222 Mins Read
    FTX Used $10 billion in user funds to support Alameda Research
    Share
    Facebook Twitter LinkedIn Email Reddit Telegram WhatsApp

    Sam Bankman-Fried’s trading company, Alameda Research, owes his cryptocurrency exchange, FTX, over $10 billion for taking out loans financed by deposits from FTX users.

    Frances Coppola, an economist, said that exchanges like FTX shouldn’t be investing their clients’ money. It shouldn’t be handling such assets in any way.

    According to some reports, FTX loaned more than half of its users’ assets to Alameda, which then used them to wager on other cryptocurrencies and support other companies trying to survive the market crash.

    The problems for FTX began after Alameda’s balance sheet was questioned, claiming that a significant portion of it was made up of FTT. 

    Changpeng Zhao, on the other hand, disclosed plans to sell the company’s billions of FTT, which caused the value of the crypto to plunge irreversibly. However, a day after, Binance withdrew from their plans because of due diligence.

    On Thursday, FTX processed a few successful withdrawals for data trackers like Nansen, although it is still unknown who was able to do so and why. 

    Sam Bankman-Fried, who owns both FTX and Alameda Research, apologized in front of the public this morning and said he “fucked up and could have done better.” 

    He also mentioned that Alameda is “winding down trading” and claimed, “It isn’t doing any of the crazy stuff that I see on Twitter.”

    We hope this is just step one: beginning to find ways to bring liquidity to users.

    That is the core thing that I am fighting for right now, and will continue to fight for in whatever ways I can. https://t.co/pzTJBsytVS

    — SBF (@SBF_FTX) November 10, 2022

    FTX users are safe, according to Bankman Fried, who also assured them that everything involving the local exchange, which runs as a distinct business, and the worldwide FTX.com exchange is related.

    The FTX.us website now advises investors to “close down any investment you desire to close down” and warns that “trade may be terminated on FTX US in a few days. Withdrawals are and will remain open.”

    Previous ArticleCoinbase Fires Over 60 Employees
    Next Article FTX Allegedly Bankrupt As the Exchange Files for Bankruptcy Protections

    Related Posts

    SBF Offered Trump $5 Billion Not To Run for President

    Vitalik Buterin Highlights Centralization Concerns On Staking Pools

    Coinbase Secures Singapore License

    SBF Offered Trump $5 Billion Not To Run for President

    October 3, 2023

    Vitalik Buterin Highlights Centralization Concerns On Staking Pools

    October 3, 2023

    Coinbase Secures Singapore License

    October 3, 2023

    “Uptober” Arrives: Bitcoin & Ethereum Surge

    October 3, 2023

    Bitcoin Options Worth $3 Billion Set to Expire

    October 2, 2023
    Facebook X (Twitter) Instagram Telegram RSS
    • Home
    • Advertise on Crypto Academy
    • Terms and Conditions
    • Privacy Policy
    © 2023 Crypto-Academy.org. All rights reserved.

    Type above and press Enter to search. Press Esc to cancel.

    Go to mobile version